2006(05)LCX0207

IN THE CESTAT, WEST ZONAL BENCH, MUMBAI

Ms. Jyoti Balasundaram, Vice-President and Dr. Chittaranjan Satapathy, Member (T)

GTC Industries Ltd.

Versus

Commissioner of Customs, Mumbai

Order No. A/412/2006-WZB/C.S.T.B., dated 1-5-2006 in Appeal No. C/264/2001-Mum.

Cases Quoted -

G.T.C. Industries Ltd. v. Collector - 1994(11)LCX0069 Eq 1995 (075) ELT 0627 (Tribunal) - Relied on [Para 4]

Advocated By -

Shri Z.B. Nagarkar, Advocate, for the Appellant.
Shri R.B. Tiwari, Jt. CDR, for the Respondent.

: [Order per : Jyoti Balasundaram, Vice-President]

The issue for determination in this appeal is the classification of goods described as "Cork Tipping Base Paper" imported by the appellant herein under bills of entry dated 18-10-1997 and 4-3-1998 - whether under CTH 4805.29 as claimed by the importers under Chapter Heading 48.13 as held by the authorities below. Heading 48.05 covers "Other uncoated paper and paperboard, in rolls or sheets" while Heading 48.13 covers "Cigarette paper, whether or not cut to size or in the form of booklets or tubes".


3. We have heard both sides.


4. The paper imported is subject to what is called "Motley Process" which is carried out on machines with gravure process and the ink used for coating is a mixture of resin, pigment and solvents. Cork Tipping Paper is used in the manufacture of cigarettes and is a coated paper which is made from uncoated base paper and the basic reason for using coated cork tipping paper is to increase the resistance for the tip from wetting during smoking. As per the explanation of the appellants, "in the gravure process coating is done from a lowered surface. The design is etched on the cylinder forming cavity depression. Inking is accomplished by coating the entire cylinder with ink and finally wiping the excess ink. When the cylinder is pressed and rolled against the paper, the ink is transferred from the cylinder to the paper giving the required quality and design (motling)." It is seen from the above that coating with ink is what gives the tipping base paper the required quality of resistance during smoking of cigarettes. As per the HSN Explanatory notes, to Chapter Heading No. 48.13, "the heading covers cigarette paper (including plug wrap and tipping paper), used for wrapping the filter mass and for assembling the filter-tip and the cigarette respectively." Therefore, the classification adopted by the authorities below under CTH 4813.90 appears to be correct and further, in the assessee's own case as reported in 1995 (075) ELT 627, MOTLEY process has been held to be printing of white dots on one side of the paper and eventually used in wrapping filter mass and assembling filter tip of cigarettes.


5. In the light of the above, we uphold the classification under CTH 4813.90, uphold the impugned order and reject the appeal.

(Dictated in Court)

Equivalent 2006 (202) ELT 0058 (Tri. - Mumbai)